Ethereum in price discovery mode may not stop until ETH hits $7,000

Ethereum price gained an impressive 6% on the Tuesday trade session, outperforming Bitcoin nearly two to one. Positive momentum remains, and Ethereum could be poised for one of the biggest and fastest rises of the past three years.

Ethereum price action outperforms Bitcoin as it looks for new highs

Ethereum price has a current projection now at $7,300. Previous articles and analyses have identified $6,400 as the next value area that Ethereum would hit before finding a temporary top. However, given the recent price spike and current Point and Figure chart construction below, $6,400 may be too conservative. The Vertical Profit Target Method identifies $7,300 as the projected profit potential of the previous X-column. $7,300 is also the 200% Fibonacci expansion level. This confluence zone is likely the area where Ethereum will reach before finding a large amount of selling pressure.

ETH/USD $100/3-box Reversal Point and Figure Chart

Some downside risks to Ethereum price are present. When Ethereum hits $5,000, it will develop a Pole Pattern and could face some selling pressure. Shorts may entertain an entry below the 50% range of the X-column at $4,500. Moves below $4,000 are possible, but they likely won’t occur nor be sustained unless a triple bottom or split triple bottom were to develop and then break near the $3,900 level. In that scenario, a retest of the mid-$3,000 range is likely.